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Consultant recommends refreshed 26‑step pay structure; assembly questions funding and implementation
Summary
Gallagher presented a compensation study recommending a refreshed 26‑step pay structure, a 2% trend/COLA, and targeted placement adjustments with an estimated first‑year payroll cost of roughly $89,000 (0.86% of payroll); assembly members pressed for funding capacity and details on ongoing costs.
Gallagher presented the borough’s compensation study on April 20, recommending adoption of an updated 26‑step pay structure, a 2% trend (including a July 1, 2026 COLA), and salary placement adjustments for employees who would fall below the new minimums.
Eric Spana, Gallagher managing director, said 71 of 80 benchmark positions were matched and the borough’s overall pay was approximately 11% above market on average; Gallagher recommended structural refreshes, consolidated steps and targeted adjustments to bring a small number of employees to new minimums. Gallagher’s cost estimate for the adjustments was about $89,193 in payroll (approximately 0.86% of payroll) as a one‑time placement plus the included COLA.
Assembly members asked whether the study considered the community’s capacity to fund recommendations, whether health‑care increases were included, and how annual COLA would interact with structure adjustments. Spana said the study benchmarks market competitiveness and does not model the borough’s budget capacity or health‑care cost increases; the recommended adjustments include the 2% COLA effective 07/01/2026 and the per‑employee placement adjustments would be applied as one action if adopted.
What’s next: The assembly will weigh Gallagher’s recommendations alongside the FY27 budget deliberations and staff financial analysis. Members requested additional detail on multi‑year costs and vacancy/turnover indicators before adoption.
